Brands who want to get the attention of social network site users need to think beyond the usual banner ads and widgets.
While those types of ads can work if they are creative and carefully targeted, in general weâre finding that interruptive advertising on social sites just isnât as effective as marketing messages delivered in a format that dovetails with the things that people are doing on social sites — interacting with their friends and colleges.
One of the most interesting and measurably successful new ways for brands to connect with social network users is virtual goods, also known as e-gifts. Itâs a business model thatâs just starting to hit its stride in the US and Europe and is already a key business model in Asia. According to a recent article in BusinessWeek âTwo-thirds of the $523 million in sales by China’s Tencent social sites comes from virtual goods such as pets; only 13% is from advertising.â
The BusinessWeek article Lucrative Alternatives to Online Advertising went on to note that âVirtual goods (also known as âe-giftsâ) are a better fit than traditional advertising on socially oriented sites⌠That’s because ads are more distracting than alluring on sites where people are there to interact with one another rather than surf for information or products. By contrast, virtual goods are essentially social artifacts that people use to gain status among online peers.â …Read More…
